Health insurance premium costs continue to increase in Wisconsin

Dec. 18, 2013

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Gannett Wisconsin Media

Chris Larson

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State employees in Northeastern Wisconsin saw their health insurance premiums increase at a higher rate than other regions in the state since 2000, but stayed in the middle of the pack in overall cost.

That’s according to an health insurance cost ranking report released Wednesday by Citizen Action of Wisconsin.

The report uses premium-payment information on government employees, retirees and their dependents in the Group Health Insurance Program (GHIP), about 194,000 individuals statewide. The organization thinks GHIP is an adequate surrogate for health care premium costs in the private sector, but acknowledges it is more reflective of large-employer experience.

This year, it was able to look at small-employer and individual costs as well because of the implementation of the Affordable Care Act, said Robert Kraig, executive director of Citizen Action.

The report deals only with premiums. It does not address the cost of health care — how much doctors and hospitals cost — but it does include an insurance plan quality rating.

The average statewide cost of GHIP premiums, including portions paid by the employer and employee, was $714.39 per month. In Green Bay, Sheboygan and Manitowoc, it was $746.21, and in Appleton and Oshkosh, it was $742.53.

The lowest cost was Madison — where 44 percent of GHIP members reside — at $650.10 The highest cost was $810.26 in Milwaukee and Racine. The difference was 23 percent, or $1,810 a year.

“Eighty miles should not increase health insurance costs by $1,800,” said Sen. Chris Larson, D-Milwaukee.

Kraig said Wisconsin would benefit by giving the state commissioner of insurance the authority to approve insurance rates. He said states in which commissioners have that authority have lower premiums than Wisconsin, where the commissioner’s office is allowed only to review rates. That means it has less authority to require insurance companies to charge less.

The report said Green Bay experienced cost inflation of 339 percent since 2000, when it was the lowest-cost region in the state. Appleton/Oshkosh premium growth was 227 percent. Manitowoc was 206 percent and Sheboygan was 200 percent.

Many of the reports’ conclusions have not changed year to year. For example, it says locally based nonprofit health care organizations provide better value and lower costs than regional and national for-profit health insurance organizations. Citizen Action has long advocated for a single-payer health care system and has been critical of Gov. Scott Walker for choosing not to develop a state-run insurance exchange as part of the Affordable Care Act, also known as Obamacare.

Northeastern Wisconsin fares better in the small business and individual markets, for which information is based on rates filed in the Affordable Care Act exchanges. Only Janesville/Beloit has better small group rates than Green Bay, the Fox Valley and Manitowoc/Sheboygan. And only Fond du Lac and Madison match those areas for individual rates.